Friday, September 7, 2012

Is the unemployment a structural problem

Some people say so and that is true sometimes. For example, Alberta still has 4.7% unemployment rate, even though its economy is booming. I don't believe that number will go down any time soon. Some of those are in structural unemployment. That is, their skills and labour market demand do not match, so they are unemployed. Therefore, one may conclude the solution has to be to eliminate structural barriers in the labour market such as unions, minimum wages, and other legislations related to employment protection or labour standards.

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